To SMEs Financing 5-7-9 % Loans

5-7-9 % Loans

The program provides for simplification of access of enterprises to bank lending - namely, the opportunity to receive a loan at a reduced interest rate through state compensation of interest rates to the level of 5%, 7% and 9% per annum for loans in national currency.

Pivdenny Bank is an Authorized Bank of the Entrepreneurship Development Fund for participation in the State Program "Affordable Loans 5-7-9%”. The program is implemented with the support of the President and the Government of Ukraine.

Program objectives

Investment
Replenishment of working capital

Terms and Conditions

Legal entities and individual entrepreneurs (Ukrainian residents)
Borrower and ultimate beneficial owner – Ukrainian residents
Term of duration: 12 months or more.
Total government assistance for businesses within the framework of any grant programme during the three-year period must not exceed the equivalent of €200,000 (aggregate sum for an affiliated group), not applicable to business entities operating in the field of agricultural production and fisheries.
Compensatory interest rate (client’s rate) depending on the funding objective, annual operating income and the number of employees hired
Business entity involved in agricultural production must be filed with the State Agrarian Register
Business entity engaged in agricultural business (main NACE) according to all NACE codes of Section A and in agricultural processing (main NACE) according to all NACE codes of Groups 10.51, 10.61 and 10.71 of the National Classifier of Ukraine must introduce and consistently be in compliance with the World Bank Environmental and Social Standards
A business entity free from any limitations on government assistance under Article 13 of the Law of Ukraine “On Development and State Support of Small and Medium-Sized Businesses”

Targets	Investment goals		Funding of working capital
Annual interest rate (for the client)	7%*	9%**	13% (except for business entities with the annual income exceeding the equivalent of €20 million)	15% (business entities with the annual income exceeding the equivalent of €20 million)
For business entities involved in agricultural production for the agricultural sector	7%*	9%**	13% (except for business entities with the annual income exceeding the equivalent of €20 million)	15% (business entities with the annual income exceeding the equivalent of €20 million)
For business entities doing business in warlike high-risk areas	annual rate of 1% during the first 5 years of funding, later annual rate of 5%		3%
Interest rate by priority areas:
For business entities engaged in processing business according to all NACE codes of Section C and all classes of the Group 01.4 NACE of Section A of the National Classifier of Ukraine	7%*	9%**	7%		9%
For business entities requiring the rebuilding of the destroyed business and production facilities damaged as a result of the Russian military operations
For business entities engaging in power supply service activities aimed at enhancing energy efficiency of public and municipal property.
Borrower’s annual income (including group of related companies)	< €10 million	€10-50 million	< €10 million		€10-50 million

* with an option to lower the annual interest rate to 5% (if the company additionally hires two new employees); quarterly interest rate adjustment

** with an option to lower the annual interest rate for 0.5% per new additional employee (but the final interest rate must not be lower than 7%); quarterly interest rate adjustment

Entrepreneurship Development Fund Collaboration Programme with Chernivtsi Regional State Administration

Pivdenny Bank has acceded to the Entrepreneurship Development Fund Collaboration Programme with Chernivtsi Regional State Administration, which presupposes additional reimbursement of interest charged on investment loans within the framework of Affordable Loans 5-7-9% Programme.

Programme goal is to offer additional reimbursement (compensation) of a portion of interest charged on investment loans provided to micro-, small, and medium-sized businesses within the framework of the state-funded programme Affordable Loans 5-7-9%.

Interest reimbursement:

up to 50% of already paid monthly interest;
up to 100% - for communal enterprises.

Programme eligibilit

micro-, small, and medium-sized businesses registered in Chernivtsi Oblast;
enterprises that have created, reinstated, and preserved jobs during the entire period of martial law;
enterprises that have reinstated, preserved or increased their payroll fund compared to the pre-war period.

Types of loans eligible for participation in the Programme:

- investment loans only (used to finance PP&E and fixed assets) provided by the bank within the framework of Affordable Loans 5-7-9% and having a compensatory interest rate of 5% to 9% per annum.

Length of programme: up to 31 December 2027.

To learn more about the Collaboration Programme, click the link.

Retail deposit guarantee system

Support phone

0 800 30 70 30

Free of charge in Ukraine

To call from abroad dial +380 482 30 70 30